Bunnings generated sales of £1.2bn in the period and, in its fourth quarter, revenue declined 6.8%.

This compared to annual sales in excess of £1.4bn under previous Home Retail Group ownership.

The new owners said its performance was impacted by the “significant disruption” caused by the repositioning of Homebase.

The fledgling company, led by Bunnings UK and Ireland managing director PJ Davis – a Bunnings lifer, has introduced its low price proposition, sold-off old Homebase ranges and brought in new lines.

It said it remains in the “very early stages of formation” and predicts some disruption will continue while customers “adjust to the new offer in Homebase” and until the roll-out achieves sufficient scale.

Davis said: “While there is still more work to be done, the team has made good progress in repositioning the Homebase business.

“We look forward to bringing the Bunnings offer to more communities across the UK in the run-up to Christmas with the team working hard to have 15 to 20 pilots open or near completion by the end of the year.”

Team building

Earlier this year, Bunnings poached Damian McGloughlin from its biggest UK rival B&Q. After 32-years with the Kingfisher-owned retailer, McGloughlin will join Bunnings later this year as chief operating officer.